Cancelling a factory order.
Cancelling a factory order.
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Discussion

raf_gti

Original Poster:

4,211 posts

228 months

Thursday 11th November 2010
quotequote all
I placed a factory order but since then I've had a massive change of mind, I've realised that whilst I do like the car the novelty will soon wear off.

Unfortunately the car is soon to arrive at the dealership and and after having spoken to then they have mentioned the possibilty of 'penalities'.

I paid a £100 deposit and no finance has been signed off yet, only the original order paperwork.

Where I'm I likely to stand if they can't sell the car on?

I do feel bad for pulling out of the deal but ultimately I have to do what is best for me in the long run, I've been burnt before by making a poor call!

Luke.

11,786 posts

272 months

Thursday 11th November 2010
quotequote all
Surely you can only lose the deposit. What's the car?

gog440

9,294 posts

212 months

Thursday 11th November 2010
quotequote all
Have a good read of the paperwork, but from what you have said so far I think you will lose the £100 and thats it. I am very surprised that they did a factory order with only a £100 deposit though,I would have expected the deposit to be much higher.

RicksAlfas

14,287 posts

266 months

Thursday 11th November 2010
quotequote all
You will probably just lose the deposit unless you have specced a completely unsaleable car.

Hitch78

6,118 posts

216 months

Thursday 11th November 2010
quotequote all
Haven't you been umming and arrring over this since you placed the order?

Isn't it a Twingo or a Panda or something?

Crusoe

4,114 posts

253 months

Thursday 11th November 2010
quotequote all
Presume you signed to say you wanted to place the order, so they have a bit of paper saying you want the car which probably has lots of small print on it for covering them if you pull out. Depend on the car and the dealer on how much it will cost you, they might be able to find another garage who would take it and just cost you the deposit or they might charge a percentage or fee for taking it into stock.

Garlick

40,601 posts

262 months

Thursday 11th November 2010
quotequote all
RicksAlfas said:
You will probably just lose the deposit unless you have specced a completely unsaleable car.
Back in the day when I was in the showroom we used to take a rather large deposit on unusual cars. One chap in particular had to pay £5k IIRC before we would order him a white (1994 - it wasn't fashionable then) W140 300SE with mushroom cloth (he didn't like leather)

If it is a car they can sell easily the dealer should be OK, but might pressure a little bit as they won't want to lose the sale.


trickywoo

13,558 posts

252 months

Thursday 11th November 2010
quotequote all
OP is all over the show confused

18th October
raf_gti said:
I need to be able to fit a road bike into in relatively easy which will rule out MX-5 et al.
23rd October
raf_gti said:
Very close to committing to an MX5, however I want to be fully armed with all the info before I go hunting

Martial Arts Man

6,703 posts

208 months

Thursday 11th November 2010
quotequote all
About 7 years ago I ordered an X5.

A couple of months later I read that a facelift was due not long after the car was to be delivered.

Phoned the dealer and they cancelled it with full return of deposit.

Either they were really nice or it was super easy to sell a fully specced £50K V8 cars back then.

Silver Smudger

3,367 posts

189 months

Thursday 11th November 2010
quotequote all
Martial Arts Man said:
About 7 years ago I ordered an X5.

A couple of months later I read that a facelift was due not long after the car was to be delivered.

Phoned the dealer and they cancelled it with full return of deposit.

Either they were really nice or it was super easy to sell a fully specced £50K V8 cars back then.
I assume you mean that you still bought an X5, once the newer one came along - How much more were you going to spend with that dealer on the face-lifted version? I suspect the OP just wants to cancel and take his cash elsewhere - Not so attractive to the dealer

waterwonder

1,002 posts

198 months

Thursday 11th November 2010
quotequote all
You will lose your deposit but that's probably it.

They could persue you for any other losses but it very unlikely.....I've never heard of it in my time in the motor trade.

TVR1

5,478 posts

247 months

Thursday 11th November 2010
quotequote all
raf_gti said:
I placed a factory order but since then I've had a massive change of mind, I've realised that whilst I do like the car the novelty will soon wear off.

Unfortunately the car is soon to arrive at the dealership and and after having spoken to then they have mentioned the possibilty of 'penalities'.

I paid a £100 deposit and no finance has been signed off yet, only the original order paperwork.

Where I'm I likely to stand if they can't sell the car on?

I do feel bad for pulling out of the deal but ultimately I have to do what is best for me in the long run, I've been burnt before by making a poor call!
A common misconception that a 'customer' can order a car that is then manufactured just for them and on a whim decide they want to cancel the order. Unfortunately, someone will have to pay for this car and that, of course, is the dealer.

The legal position is that they are quite entitled to hold on to your deposit, until they can sell the car and then refund the deposit IF they are able to sell it for the same price.

However, if they sell the car for less than you paid for the car, they are entitled to persue you through the Civil Court system for any loss of profit as a result of selling the car for less. Of course, this rarely happens, unless the car is a very odd specification or particlarly unsaleable due to colour/trim etc. In this circumstance, they MAY be able to force you to take the car.

My advice, think twice, order once.


Edited by TVR1 on Thursday 11th November 17:38

hornetrider

63,161 posts

227 months

Thursday 11th November 2010
quotequote all
trickywoo said:
OP is all over the show confused

18th October
raf_gti said:
I need to be able to fit a road bike into in relatively easy which will rule out MX-5 et al.
23rd October
raf_gti said:
Very close to committing to an MX5, however I want to be fully armed with all the info before I go hunting
I think the factory order is a Panda - and now he's changed his mind.

TVR1

5,478 posts

247 months

Thursday 11th November 2010
quotequote all
hornetrider said:
trickywoo said:
OP is all over the show confused

18th October
raf_gti said:
I need to be able to fit a road bike into in relatively easy which will rule out MX-5 et al.
23rd October
raf_gti said:
Very close to committing to an MX5, however I want to be fully armed with all the info before I go hunting
I think the factory order is a Panda - and now he's changed his mind.
A FIAT you say? A Panda you say?.........let me revise my statement about only persuing you the if the car is difficult to sell on! laugh












OP....You're fked


Edited by TVR1 on Thursday 11th November 17:45

HAG LS1

81 posts

184 months

Thursday 11th November 2010
quotequote all
It was thanks to a cancelled order that I got 4 grand knocked of a Mitsubishi Shogun Sport Warrior 5 years ago!! Dealer needed to shift it. smile

Hitch78

6,118 posts

216 months

Friday 12th November 2010
quotequote all
I think the OP is mixing up 'factory order' as in weird and wonderful colour combinations, bespoke coach work and laser proof glass with 'made in a factory' as in absolutely standard euro boxes being built at production lag to reduce manufacturer inventory and improve cash flow.

Tell them they can keep the 100 quid and that is it - someone else will be waiting for the car that you want or will buy over another option if immediately available. In fact the moment they flip the status of the chassis on the supply system another dealer will pick it up.


10JH

2,070 posts

216 months

Friday 12th November 2010
quotequote all
I'm shocked a dealer would only take £100 deposit for a brand new car. They can't get many cancellations at all if that's all they need for a deposit, otherwise they'd have upped it by now.

raf_gti

Original Poster:

4,211 posts

228 months

Friday 12th November 2010
quotequote all
trickywoo said:
OP is all over the show confused

18th October
raf_gti said:
I need to be able to fit a road bike into in relatively easy which will rule out MX-5 et al.
23rd October
raf_gti said:
Very close to committing to an MX5, however I want to be fully armed with all the info before I go hunting
My first PH 'stalker' smile

Yes, I've been rather un-decided about where to go with my next choice of car, hence the rather contradictory posts which you took the time to find.

Originally I was told by the garage that garage that the car was in 'UK storage' and would be a two week delivery, this was back in August before I left the UK. On the day I was due to pick it up I was told that there had been an error and it would in fact have to be a factory order. Unfortunately for me this has given me a lot of time to re-consider the decision, whilst I do like the Panda I've a feeling the novelty would soon wear off and that I would be better suited with a more involving drivers car.

As for the road bike comment, yes it is fairly important but fk it, you can cat a boot rack easily enough for the 5!

frosted

3,549 posts

199 months

Friday 12th November 2010
quotequote all
Should have ordered a yetti

Deva Link

26,934 posts

267 months

Friday 12th November 2010
quotequote all
TVR1 said:
A common misconception that a 'customer' can order a car that is then manufactured just for them and on a whim decide they want to cancel the order. Unfortunately, someone will have to pay for this car and that, of course, is the dealer.
Dealers don't pay for the cars until they're registered.
TVR1 said:
The legal position is that they are quite entitled to hold on to your deposit, until they can sell the car and then refund the deposit IF they are able to sell it for the same price.

However, if they sell the car for less than you paid for the car, they are entitled to persue you through the Civil Court system for any loss of profit as a result of selling the car for less. Of course, this rarely happens, unless the car is a very odd specification or particlarly unsaleable due to colour/trim etc. In this circumstance, they MAY be able to force you to take the car.

My advice, think twice, order once.
This has come up before and most legally minded people suggested same as above. However an ex-salesman from a large dealer group said their legal advisors had told them they were on very dodgy ground even keeping the deposit, because the contracts are unevenly skewed towards the dealership they wouldn't stand up in court. ie they can can cancel for any reason whatsover, but you can't.